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Investment in Developmental Real Estate, net
 9 Months Ended
Sep. 30, 2025
Real Estate Investments, Net [Abstract]  
Investment in Developmental Real Estate, net Investment in Developmental Real Estate, net
As of September 30, 2025 and December 31, 2024, investment in developmental real estate, net consisted of the following:
September 30, 2025CostAccumulated DepreciationInvestment in Developmental
Real Estate, Net
(in thousands)
Land$11,432 $— $11,432 
Building5,332 (187)5,145 
Site improvements870 (54)816 
Tenant improvements1,183 (66)1,117 
Construction in progress4,026 — 4,026 
Lease intangibles81 (5)76 
Total $22,924 $(312)$22,612 
December 31, 2024CostAccumulated DepreciationInvestment in Developmental
Real Estate, Net
(in thousands)
Land$4,557 $— $4,557 
Building4,936 (154)4,782 
Site improvements359 (30)329 
Tenant improvements1,182 — 1,182 
Construction in progress3,141 — 3,141 
Lease intangibles41 — 41 
Total$14,216 $(184)$14,032 
During the three and nine months ended September 30, 2025, the Company acquired a developmental property for $1.5 million and transferred two land parcels carried at an aggregate value of $4.3 million from real estate owned to investments in developmental real estate. There were no such acquisitions or transfers during the three and nine months ended September 30, 2024.
For the nine months ended September 30, 2025 and 2024, depreciation and amortization expense related to developmental real estate was $0.1 million and $0.1 million, respectively, which is presented in other expenses on the Company’s Condensed Consolidated Statements of Operations. Tenant improvements and other intangibles associated with the tenant began amortizing upon commencement of the lease that occurred in February 2025. Amortization related to tenant improvements and intangibles was $71,000 for the nine months ended September 30, 2025 compared to no such amortization for the nine months ended September 30, 2024.
Additionally, the Company leases space to a tenant under an operating lease. The lease provides for the payment of fixed base rent payable monthly in advance and periodic step-ups in rent over the term of the lease and a pass through to tenants their share of increases in real estate taxes and operating expenses over a base year. The lease also provides for free rent and a tenant improvement allowance of $2.7 million. The lease commenced February 2025 with a cash rent abatement period of 425 days.
As of September 30, 2025, future minimum rents under non-cancelable operating leases were as follows:
Years Ending December 31,Amount
(in thousands)
2025 (remaining three months)$— 
2026936 
20271,267 
20281,292 
20291,318 
Thereafter8,852 
Total$13,665 
The Company acquired one property in investment in developmental real estate that was subject to an in place lease during 2023. In the purchase price allocation, the Company recorded an acquired below market lease intangible of $0.7 million. The estimated annual amortization of the below market lease intangible is $0.1 million per year.